- Vladimir Putin has signed a law to legalize crypto and BTC mining.
The law allows entities and businesses registered with the government to mine crypto.
As a seasoned researcher with a particular interest in global economics and digital currencies, this recent development in Russia has piqued my curiosity. Having closely observed the sanctions imposed on Russia over the past decade, it’s fascinating to see how the country is now embracing crypto as a potential solution.
For the past three months, Russian legislators have been discussing and creating guidelines and legal structures related to cryptocurrency mining.
Last month, the State Duma voted to approve the new crypto mining bill, which made Russia a pro-crypto country.
Following the parliament’s endorsement, President Vladimir Putin put his signature on a bill that makes cryptocurrency and Bitcoin [BTC] mining legal within Russia.
Putin’s crypto checkmate
In simpler terms, President Vladimir Putin has officially approved a new regulation that allows cryptocurrency mining within Russia, effective from November 2024 onwards.
As per the law, it is permitted for both individuals and officially recognized businesses (registered with the Russian Ministry of Digital Development) to participate in cryptocurrency mining activities.
Under the newly enacted regulations, it’s now possible for unregistered people to participate in cryptocurrency mining, as long as their energy usage complies with the established maximum.
As I engage in discussions with government officials, I’ve observed that the landscape of digital currencies is rapidly evolving on a global scale. These innovations are significantly transforming trade, banking, and cross-border transactions. In my own words, I would say that digital currencies are showing great promise and are shaping up to be a game-changer in these key sectors.
As someone who has witnessed the rapid evolution of technology throughout my lifetime, I firmly believe it is crucial for Russia to seize the opportunity presented by the digital asset revolution. To do so, we must swiftly establish a robust legal framework and regulations, invest in necessary infrastructure, and create conditions that facilitate the circulation of these assets, both domestically and internationally.
By enacting this new law, the President has made it legal for cryptocurrency activities like mining to take place within Russia.
As a crypto enthusiast, I’m excited to see Russia embracing cryptocurrencies for cross-border transactions. It’s clear that we are in the midst of a global crypto revolution, and it’s inspiring to witness such widespread acceptance and adoption.
On the other hand, some people have suggested that the new regulations may serve to dissuade individuals from engaging in mining activities.
Additionally, the Ministry of Digital Development enables the government to oversee that miners comply with rules and established guidelines.
Because miners are required to disclose the quantity of cryptocurrency they mine, as well as their storage addresses, to the authorities, this gives the government substantial oversight and control over crypto mining operations.
How crypto will help Russia amid sanctions
For the past ten years, Russia has experienced more international sanctions than any other country. With the complete takeover of Ukraine in 2022, its economic and financial structures have been subjected to extensive penalties.
In the year 2022, Swift’s payment networks disconnected Russia’s financial institutions from their global system, leading to complications in Russia’s international money transfers.
International sanctions have significantly affected people and companies’ capacity to engage in international financial transactions, particularly those involving multiple currencies.
In other words, by adopting cryptocurrencies, Russia can bypass international sanctions using a network of decentralized financial systems, thereby enhancing its global trading activities and strengthening its currency.
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2024-08-09 10:47